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2025-06-02 12:32:05 NEW WORLD DEV (00017.HK) announced after the market closed on May 30 that it would delay the interest distribution for June on two of its perpetual capital securities (PCSs) and intends to postpone payments for another PCS, according to a report issued by HSBC Global Research. The total nominal value of these PCSs amounts to USD3.4 billion. In HSBC Global Research's opinion, while retaining cash can improve NEW WORLD DEV's short-term liquidity, it, combined with the recent reset of a higher interest rate for one of its PCSs due to the non-exercise of the early redemption clause, also signals to investors that the company is facing certain financial pressures, which will affect its ability to distribute dividends to equity investors (the broker forecasted zero dividend payments for FY25). Despite its efforts in improving its financial situation (particularly property sales) with various initiatives, HSBC Global Research saw low visibility for of its business turnaround. The broker kept a Reduce rating on the company with a target price of HKD3.58. ~ AAStocks Financial News Web Site: www.aastocks.com | |